RBC initiates Knife River, Martin Marietta amid continued infrastructure spending
Investing.com -- RBC Capital Markets began coverage of Knife River Corp and Martin Marietta Material, noting difference in in margin profiles among U.S. aggregates producers as infrastructure spending continues to support the sector.
The bank rated Knife River Outperform with a $129 price target on potential for earnings growth through margin improvement. Martin Marietta was initiated at Sector Perform with a $515 target, reflecting its already high margins. Vulcan Materials (NYSE:VMC) and CRH (NYSE:CRH) were rated at Sector Perform and Outperform respectively.
RBC noted that while all major U.S. aggregates firms are benefiting from federally funded infrastructure programs, their positioning and profitability vary. Knife River, which was spun out from MDU Resources in 2023, is seen as earlier in its margin expansion cycle compared to more mature peers like Martin Marietta and Vulcan.
The analysts said that firm-level differences in exposure to weather, regional gas tax funding, and the mix of construction materials influence operating results. The note includes a breakdown of cost structures across cement, ready mix, asphalt and gypsum segments, and maps company asset locations by U.S. state.
RBC also made minor estimate changes to Cemex, CRH, Buzzi Unicem (BIT:BZU), and Vulcan.
While Martin Marietta and Vulcan remain the most widely followed names in the sector, RBC said investors may be overlooking Knife River's potential for margin growth and CRH's integration advantages in North America. Heidelberg (ETR:HDDG) Materials was also cited as having underappreciated U.S. assets.
Brokerage said the June 23 market debut of Amrize, a CRH spinout, could further shift investor attention toward the sector.
Related articles
RBC initiates Knife River, Martin Marietta amid continued infrastructure spending
Deutsche Bank is now bullish on Cisco - highlights AI tailwinds
Boeing Commercial Airplanes head meets Air India chairman after fatal 787 crash
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Wire
39 minutes ago
- Business Wire
Seveno Capital and Borderless Healthcare Group launch JV to provide ‘medical wellness service' to hospitality owners
SINGAPORE--(BUSINESS WIRE)-- Seveno Capital and Borderless Healthcare Group have launched the world's first medical wellness real estate company to target the growing $1.8 trillion global wellness market as the world enters a 'longevity boom' that UBS reports will be worth US$8 trillion by 2030. The Well Estate will provide a turnkey solution for hospitality asset owners to be able to offer transformative medical wellness experiences to guests as the global hospitality industry seeks to harness the US$1.8 trillion global wellness boom. Share The Well Estate will support hotel and hospitality asset owners to shift from a 'room yield' to a 'room plus' business model by providing turnkey medical wellness solutions that give guests live access to health and medical experts as well as famous content creators. Guests will also have access to personalised diets, fitness, yoga, mindfulness and health programs. The Well Estate solution will unlock new revenue channels for hospitality asset owners that will drive higher transaction value per stay, longer guest retention and full utilization of underperforming facilities like gyms and spas. The new company will focus on asset owners within the 'wellness archipelago' of Singapore, Thailand, Indonesia, Vietnam and Malaysia. The global wellness industry is booming, valued at $5.6 trillion in 2023 and projected to reach $8.5 trillion by 2027, according to the Global Wellness Institute. The wellness economy is also expected to grow by 8.6% annually through 2027, outpacing global GDP. Hotels are playing a growing role, with wellness tourism accounting for $651 billion globally in 2022 and expected to hit $1.4 trillion by 2027. Travelers increasingly seek wellness experiences, with over 50% preferring hotels that offer spa, fitness, and nutrition services. Luxury wellness resorts can generate 30–50% higher daily rates than traditional hotels. Hotels are investing heavily to meet this demand and to capture a larger share of this lucrative market; integrating labs, diagnostics, IV drips and longevity hubs into their amenities. The Well Estate is a JV between Borderless Healthcare Group, led by global healthcare technology, media, telecommunication, service and content pioneer Dr Wei Siang Yu; and Seveno Capital, led by Park Hotel Group founder and healthspan entrepreneur, Allen Law. Allen Law said: 'The Well Estate will enable hospitality asset owners to align their business and guest offering with the global wellness and longevity revolution that will be equally as transformative as AI.' Dr Wei said: 'This represents a new phase for the hospitality sector and a new benchmark for immersive guest experiences that are profitable, purposeful and scalable.'
Yahoo
40 minutes ago
- Yahoo
Seveno Capital and Borderless Healthcare Group launch JV to provide ‘medical wellness service' to hospitality owners
The Well Estate will provide a turnkey solution for hospitality asset owners to be able to offer transformative medical wellness experiences to guests as the global hospitality industry seeks to harness the US$1.8 trillion global wellness boom. SINGAPORE, June 17, 2025--(BUSINESS WIRE)--Seveno Capital and Borderless Healthcare Group have launched the world's first medical wellness real estate company to target the growing $1.8 trillion global wellness market as the world enters a 'longevity boom' that UBS reports will be worth US$8 trillion by 2030. The Well Estate will support hotel and hospitality asset owners to shift from a 'room yield' to a 'room plus' business model by providing turnkey medical wellness solutions that give guests live access to health and medical experts as well as famous content creators. Guests will also have access to personalised diets, fitness, yoga, mindfulness and health programs. The Well Estate solution will unlock new revenue channels for hospitality asset owners that will drive higher transaction value per stay, longer guest retention and full utilization of underperforming facilities like gyms and spas. The new company will focus on asset owners within the 'wellness archipelago' of Singapore, Thailand, Indonesia, Vietnam and Malaysia. The global wellness industry is booming, valued at $5.6 trillion in 2023 and projected to reach $8.5 trillion by 2027, according to the Global Wellness Institute. The wellness economy is also expected to grow by 8.6% annually through 2027, outpacing global GDP. Hotels are playing a growing role, with wellness tourism accounting for $651 billion globally in 2022 and expected to hit $1.4 trillion by 2027. Travelers increasingly seek wellness experiences, with over 50% preferring hotels that offer spa, fitness, and nutrition services. Luxury wellness resorts can generate 30–50% higher daily rates than traditional hotels. Hotels are investing heavily to meet this demand and to capture a larger share of this lucrative market; integrating labs, diagnostics, IV drips and longevity hubs into their amenities. The Well Estate is a JV between Borderless Healthcare Group, led by global healthcare technology, media, telecommunication, service and content pioneer Dr Wei Siang Yu; and Seveno Capital, led by Park Hotel Group founder and healthspan entrepreneur, Allen Law. Allen Law said: "The Well Estate will enable hospitality asset owners to align their business and guest offering with the global wellness and longevity revolution that will be equally as transformative as AI." Dr Wei said: "This represents a new phase for the hospitality sector and a new benchmark for immersive guest experiences that are profitable, purposeful and scalable." View source version on Contacts Enquiries about The Well Estate can be made to impact@
Yahoo
43 minutes ago
- Yahoo
Stock hits new all-time high as Israel-Iran conflict escalates
Stock hits new all-time high as Israel-Iran conflict escalates originally appeared on TheStreet. Circle Internet Group (NYSE: CRCL), the crypto company behind the USDC stablecoin, opened to an all-time high (ATH) of $165.60 on June 16 as the Israel-Iran conflict entered into its fourth day. As reported earlier, Circle earlier reportedly rejected acquisition bids by crypto industry giants such as Ripple and Coinbase (Nasdaq: COIN). It later made an impressive IPO debut on June 5 as it opened at $69, 124.19% above the IPO price of $31. The IPO was underwritten by a group of Wall Street giants, including JP Morgan Chase, Citigroup, and Goldman Sachs. The previous CRCL ATH was around $138 which it hit a week ago. In fact, its trading was halted multiple times due to limit up-limit down rules due to a stock's price or trading volumes experiencing extreme volatility. Circle is the company behind the U.S. dollar-pegged USDC stablecoin. It is a type of cryptocurrency that attempts to keep its price stable, unlike traditionally volatile cryptocurrencies such as Bitcoin. As per DeFiLlama, the stablecoin market is worth $251.75 billion, with USDC accounting for more than 23% of the market share. Recently, Circle CEO Jeremy Allaire hailed stablecoins as "the highest utility form of money ever created." Though the industry is not yet at its "iPhone moment," when developers realized the potential of programmable mobile devices, it will soon realize the power of programmable digital dollars, Allaire added. At press time, CRCL was trading at $157.07 at the time of writing, up 17.60% a day. Stock hits new all-time high as Israel-Iran conflict escalates first appeared on TheStreet on Jun 16, 2025 This story was originally reported by TheStreet on Jun 16, 2025, where it first appeared. Sign in to access your portfolio
